EV Space is All Charged-Up With IPO News: ETFs to Play
Wall Street is abuzz with the electric vehicle IPOs. Phoenix Motors filed for an initial public offering in the United States on Monday after Rivian made a blockbuster market debut...
Wall Street is abuzz with the tale of two electric vehicle (EV) stocks — Rivian RIVN and Tesla TSLA. Tesla’s success is known to all. And Rivian Automotive, the electric-vehicle company backed by Amazon.com Inc. (AMZN) (which has 20% stake in the automaker) and Ford Motor, went public on Nov 10, 2021, through a high-profile IPO. As many as 153 million shares were sold at an initial offering price of $78.00, valuing the company at $66.5 billion. Shares of RIVN had an awesome spike on the market debut.
Phoenix Motors filed for an initial public offering in the United States on Monday, becoming the latest EV maker looking to cash in on a growing investor appetite for eco-friendly automobiles, per Reuters. Phoenix Motors unveiled its finances for the first time in its filing, revealing a decline in revenues and wider losses for the nine months ended September 2021. Phoenix, founded in 2003, launched its first electric drivetrain in 2009 and sold its first commercial EV shuttle bus in 2014.
This puts the spotlight onSimplify Volt Robocar Disruption And Tech ETF VCAR,Global X Autonomous & Electric Vehicles ETF DRIV and iShares Self-Driving EV And Tech ETF IDRV. The global strive for electrification is causing a three-year wave of initial public offerings in the electric vehicle space that could raise about $100 billion until the end of 2023, according to Bank of America Corp, as quoted on Bloomberg.
Growing investments in the sector, ranging from batteries to charging cars, will see companies spinning off units as well as go public, said Patrick Steinemann, co-head of Global Mobility Group Investment Banking at Bank of America, the Bloomberg article noted. One of the largest IPOs to hit next year will be the spinoff of LG Chem Ltd.’s battery unit LG Energy Solution in South Korea, which could raise about $10 billion. It’s one of the world’s biggest battery makers after China’s Contemporary Amperex Technology Co., the Bloomberg article pointed out.
The top 10 battery makers are expected to nearly triple their manufacturing capacity by 2022 to meet the upcoming surge in demand, according to BloombergNEF. Against this backdrop, below we highlight a few EV ETFs that are good bets currently.
EV ETFs in Focus
Simplify Volt Robocar Disruption And Tech ETF (VCAR)
Simplify Volt Robocar Disruption and Tech ETF is active and does not track a benchmark. The fund VCAR looks to concentrate on those few disruptive companies poised to dominate autonomous driving and enhance the concentrated exposures with options. The ETF VCAR charges 95 bps in fees.
Global X Autonomous & Electric Vehicles ETF (DRIV)
The Global X Autonomous & Electric Vehicles ETF seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Autonomous & Electric Vehicles Index. The index tracks the price movements in shares of companies that are active in the electric vehicles and autonomous driving segments. The fund DRIV charges 68 bps in fees.
iShares Self-Driving EV And Tech ETF (IDRV)
The iShares Self-Driving EV and Tech ETF seeks to track the investment results of the NYSE FactSet Global Autonomous Driving and Electric Vehicle Index. The index comprises developed and emerging market companies that may benefit from growth and innovation in and around electric vehicles, battery technologies and autonomous driving technologies. The ETF IDRV charges 47 bps in fees.
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Global X Autonomous & Electric Vehicles ETF (DRIV): ETF Research Reports
Tesla, Inc. (TSLA): Free Stock Analysis Report
iShares SelfDriving EV and Tech ETF (IDRV): ETF Research Reports
Simplify Volt Robocar Disruption and Tech ETF (VCAR): ETF Research Reports
Rivian Automotive, Inc. (RIVN): Get Free Report
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